Development of land or structures for the purpose of improving a property’s use is referred to as property development. If the development process is successful, this type of development can yield a significant return on investment.  From buying land to building and developing facilities, property development entails a variety of tasks and procedures. The “continuous modification of the building design to satisfy society’s demands” is one definition of property development.

Starting the Property Development Process

It’s time to begin genuine property development once you have decided that being a developer is the best career choice for you. It’s crucial that you first educate yourself on the property you are buying, the neighborhood market, finance, economics, town planning, and the building process.

Additionally, learning more about marketing for all kinds of real estate enterprises is a good idea. By becoming knowledgeable about these topics, you can be ready to handle any problems that arise during the development process. Once you are aware of the steps involved in property development, you will be able to determine who to contact and how much the project will cost.

Who should you contact?

Even minor real estate development initiatives contain a lot of moving components. It’s crucial to select the correct team members before you even consider beginning a property development project. You may just require some of the following team members, depending on the project’s complexity:

Engineers	specialists for the structural, traffic, environmental, and civil aspects of a real estate development project
Urban designers and town planners	Those responsible for creating plans for the usage of land
Buyer’s agent	To assist you to find and negotiate the right asset for you
Accountants	To assist you in creating the proper ownership structures
Lawyer	Can assist with your contracts
Finance strategists	Will help you obtain development finance
Project managers	These individuals will be the lead for planning, executing, and monitoring a project until completion
Development managers	Will oversee all development-related activities
Construction managers	Will explicitly oversee the construction elements of a project for development
Quantity surveyors	Manage the costs pertaining to a property development project
Architects and designers	Will help you design the building that you wish to create
Project marketing specialists	Can help you market the property once it’s been completed
Landscape architects	Will evaluate, arrange, create, and oversee the property you are building.
Building contractors	Assist you in building activities Includes painters, plumbers, electricians, and general contractors

The Project’s Cost and Profitability

The most important question to ask when starting a development project is if you can afford to complete the development project. The initial purchase price, the equity in the project, any legal fees, the cost of consultants like architects and town planners, the cost of construction, a contingency amount in case of unforeseen costs, and any taxes that will be levied on the property should all be considered when determining the cost of a project.

Remember that funding a real estate development project is thought to be more challenging than financing a straightforward investment transaction. The majority of banks and lenders permit developers to borrow between 70 and 80 percent of the project’s total development expenditures. The expenses for consultants and architects are not included in these prices. The banks will consider your proposal to be a commercial project if it calls for the construction of at least four homes, which will make getting finance even more challenging and time-consuming.

It’s critical to be able to demonstrate that you have solid and reliable financials if you want to increase your chances of receiving funding for your development project. In order to lower the banks’ risk of lending to you, you will also need to make a sizeable down payment. The initial costs of a development project may be expensive, but your predicted earnings may far outweigh those costs, which can be quite advantageous.

The Property Development Process

You should be aware of the next steps in the property development process, which include:

1. Pre-purchase stage: Based on their financial pre-approval, the developer explores properties at this stage.

2. Negotiating contracts and purchasing: At this point, land is purchased for a price that enables the developer to turn a profit.

3. Town planning and development approval: At this point, your architect creates blueprints that adhere to council development requirements and planning regulations. A Town Planner may also be needed at this point because it can be complicated.

4. Working, Drawing, and Documentation: Once you have received development approval, you will go on to the planning stage, where you will finalize the build’s designs. This step will include working with several consultants, including an architect and an engineer.

5. Pre-construction: By getting many quotations and researching the reputation of the builders you’re considering employing, you’ll want to ensure that you choose the best one.

6. Construction: This phase entails actually erecting the building in accordance with the development plans, which can take six to twelve months to accomplish.

7. Completion: During this phase, a subdivision plan must be submitted in order to get titles for each residence.

The most crucial thing to keep in mind if you feel that you are ready to start your property development journey is that you’ll want to pick the best partners for the job. You will need a lot of advisors, building permits for the project, dependable builders, and other experts who can handle every other aspect of the project during development.

To obtain more info regarding finding the best investment property or a suitable development site for your specific needs and goals, arrange a free strategy session with our buyer’s advocate.

A strategy session includes the following:

• Assessment of your current situation
• Discover property investment strategy options
• Recommendations related to the right property investment strategy for your specific situation
• Confirm next steps 

Call 0411 70 3682 or email to arrange a discussion.